Posted on 02/15/2020 3:51:48 AM PST by karpov
Or government.
Personally I think all loans should be forgiven. All of them.
Then everyone would have a fair start.
Why stop at student loans?
Sarcasm off.
It is difficult to estimate how often this happens.
The National Automobile Dealers Association said there is no evidence to suggest “kicking the trade” is prevalent.
...
But WSJ will do an article on it anyway, and use a clickbait title.
Pure garbage.
The car is the collateral that secures the loan; just like homes, they can be repossessed. This process is actually the legal resolution to the problem; simply take back the asset in question.
Credit card rates are so much higher because there is usually nothing to take back; pretty much “unsecured”.
While I’ve never done it myself, I understood why people walked away from their homes in the 2007/2008 Depression; it was the legal means to get out of the arrangement - agreed upon by both parties in advance.
Best advice anyone ever game me: Avoid debt.
Student loans are unsecured; the older cars are the legal collateral to auto loans. The remedy (repossession) is the legal response.
When I saw more and more cars using keyless technology, it occurred to me that repossessing cars just got a lot easier for lenders.
I take it you have never listened to Dave Ramsey. People get upside on auto loans more or less the minute they drive off the lot. The value of a used car is far less than a new car, regardless of down payment.
Later in the article:
“Ms. Parks now drives a used Nissan Murano her family bought her. Her credit score has plunged. She owes at least $15,000 on the Soul and Rogue, according to her credit report.”
Defaulting on debt kills your credit rating.
what about people with no debt? De we get our money back?
AOConomics!
It is in the Bible: Jubilee.
“Defaulting on debt kills your credit rating.”
The sad part is these type of people do not know that and do not know about the long-lasting consequences.
I bought a low mileage used truck last year from a dealer. I was in the process of negotiating a deal on a different truck when I saw this other truck right outside the salesman’s window. I asked about the other truck and was told another salesman was working with another customer on a deal. I had time and said I would wait to see how it worked out. Ten minutes later I was told the other guy could not get the necessary financing, I walked out owning the truck but couldn’t help thinking why would anyone attempt to buy a vehicle without knowing what they can afford. I can only image how bad the other guy’s credit rating was if no one would lend him money at any interest rate.
Forget the corona virus, the bottom has dropped out of the KIA market. It’s time to short all the Toyota stock you can. If your credit score is 400 and the dealership wants to lend you more money go for it. Dave Ramsey is such a buzz-kill.
You have such a long term plan, many Americans want it NOW! Guess who wins in long run? Well until the Government steps in with debt forgiveness or some form of wealth transfer to buy votes..
Anyone who follows financial advice from a car dealer is stupid.
A car payment is the problem. Save up the money, buy a $4000 car. Save some more. Buy a better car. Model selection and a pre-purchase inspection by an independent mechanic are the key elements.
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